Gamma Holding strengthens Sailcloth Technology

Acquisition of Fraser business in Australia

Gamma Holding has acquired the D4 membrane technology business of Fraser Sails Pty Ltd, Australia, effective February 1, 2004. This business will be added to Gamma Holding's Sailcloth Technology business unit.

Fraser's D4 business comprises the development, manufacture and sale of pre-fabricated sail segments to sailmakers throughout the world. The segments, or ‘membranes', are based on composite materials. The business has a consolidated turnover of EUR 3 million and a production facility located in Somersby, NSW, Australia, which employs a total of 25 people.

Within the business unit Sailcloth Technology, this strategic acquisition will strengthen the company Dimension-Polyant, the world market leader in the field of sailcloth technology. This company, which has 150 employees, generates a turnover of EUR 40 million. Dimension-Polyant has production facilities in Germany and the United States and sales offices and service centres in France, the United Kingdom, Scandinavia and Australia.

In addition to acquiring the D4 technology and business, Dimension Polyant has signed a license agreement with Genesis International A/S, Denmark, allowing the manufacture of sail membranes/panels based on a patented construction of composite materials.

Both the D4 acquisition and the license agreement will enable Gamma's Sailcloth Technology to benefit further from sailing's high growth potential. The D4 membrane technology will offer the business unit distinct advantages, not only in the performance of high-tech sails, but also in terms of material consumption and production costs. Accordingly, Gamma Holding expects to further strengthen its leading position in the development and manufacture of sailcloth for all classes and types of boat.

Gamma Holding has financed the acquisition of the Fraser business from available credit facilities. The transaction will have a positive impact on earnings per share.

Executive Board, Gamma Holding N.V.

Helmond, 3 February 2004

Profile

Gamma Holding develops, manufactures and sells innovative, high-quality textile-based products throughout the world. Gamma Holding comprises two sectors (Gamma Technologies and Gamma Comfort & Style) and seven business units with 112 operating companies. The company has more than 9,000 employees spread over 36 countries. With activities in the fields of Belting, Filtration, Coating & Composite and Sailcloth Technology, as well as Sleep Care, Car and Exotic Fabrics, the company is a leading global player. Its headquarters are located in Helmond (The Netherlands) and its shares are listed on Euronext Amsterdam.